Halma makes health and safety equipment. The full-year results, released last week, made good reading, with a 21 per cent rise in pre-tax profits to 104.6 million as revenues advanced to 518m. Halma is focussing on increasing its exposure to emerging markets as well as China and India.
Halma spent 82m on seven acquisitions over the past year and it is likely further "bolt-on" acquisitions will be made. These can easily be funded given net debt on the balance sheet is only 37m.
Certain areas of the business are facing challenging trading conditions. Therefore, the share price would appear to be "up with events", but Halma is a high-quality company and so I would not be a "seller", even at this level. Indeed, I would recommend any meaningful share price weakness is used as an opportunity to establish a position.
Scotsman says BUY
• The value of your investments may fall and you may get back less than you invested. This does not constitute investment advice and you should take professional advice regarding the suitability of this company for your portfolio.
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